Sensex tanks 491 pts
Mumbai, November 3
The Bombay Stock Exchange benchmark Sensex today tumbled by close to 500 points to close at two- month low amid a steep fall in bourses across the world on fears that economic recovery will not be as swift as expected.

Job losses to continue: US
Washington, November 3
US President Barack Obama yesterday said his administration has been successful in "pulling the economy back from brink" but sounded a cautious tone on unemployment, saying he expects job losses to continue for some more time.

SBI to foray into wealth management biz
Mumbai, November 3
To cash in on its huge branch network and client base, State Bank of India is all set to start wealth management business and financial planning services.

SC opposes shareholder’s plea
New Delhi, November 3
The Supreme Court today said it was against allowing shareholders to intervene in the cross petitions of Ambani brothers, Mukesh and Anil, in the dispute over pricing of gas.

Tatsuya Natsume (L), director, marketing, and Jnaneswar Sen, vice-presidient, marketing, Honda Siel Cars India, at the launch of new Honda CR-V in New Delhi on Tuesday. The car is priced between Rs 21 lakh and 24 lakh and comes in three variants. Tribune photo: Mukesh Aggarwal

Crude oil import bill falls 41 pc
New Delhi, November 3
India's crude oil import bill fell by 41 per cent to $31.6 billion in April-September this year as international rates declined from a record peak.

RBI buys 200 tonnes of IMF gold
Washington/New Delhi, November 3
The RBI’s gold stock has shot up by more than 55 per cent with the purchase of 200 tonnes of IMF gold at an estimated cost of $6.7 billion.
RBI, which pledged gold during 1991 crisis with the Bank of England to raise resources to meet external obligations, today said it has purchased 200 tonnes of gold from International Monetary Fund
(IMF) for $6.7 billion.

Bollywood actress Kareena Kapoor and managing director of Sony India Masaru Tamagawa pose with Sony's lightest and ultra-slim Vaio X notebook at its launch in New Delhi on Tuesday. The notebook is just half-inch thin and 655 gms in weight.
Tribune photo: Mukesh Aggarwal

Lloyds, RBS to sell assets
London, November 3
Bailed out British banking majors Lloyds Banking Group and the Royal Bank of Scotland have agreed to sell part of their businesses, a move that will bring down their dependence on taxpayers' money.
The British government holds 43 per cent stake in Lloyds and about 70 per cent in
RBS, following their rescue in the wake of the financial meltdown.

Steel cos cut prices by up to Rs 1,500 a tonne
New Delhi, November 3
The country's top steel makers, SAIL, JSW Steel, Essar and Ispat Industries, today cut prices of their products by up to Rs 1,500 a
tonne, mainly on account of falling global demand. "We have cut prices of our flat steel products (used primarily by automobile and the white goods industry) in the range of Rs 500-1,500 a
tonne," a SAIL spokesperson told PTI.

This file picture shows a worker holding up a logo of German carmaker BMW at the company's plant in the southern German city of Dingolfing. BMW joined compatriot Daimler on Tuesday in posting dismal third quarter figures and warned there was no guarantee a recovery is underway, though strong growth was seen in China. — AFP

Mumbai, November 3
The Bombay Stock Exchange benchmark Sensex today tumbled by close to 500 points to close at two- month low amid a steep fall in bourses across the world on fears that economic recovery will not be as swift as expected.

Extending losses to the sixth day in a row, the 30-share Sensex closed sharply lower by 491.34 points to close at 15,404.94, a level last seen on September 3.

The biggest fall before this was on August 17 when it tanked 600 points. In the previous five trading sessions, it had lost 914.53 points. The National Stock Exchange index Nifty also dropped by 147.80 points, or 3.14 per cent to 4,563.90.

Hectic selling was further augmented in the last one hour of trading after European stocks opened weaker.

Blue-chips such as RIL, Infosys, SBI led the fall. Metal major Hindalco was the biggest loser at 10.50 per cent.

Reliance Industries, the heaviest on the Sensex, fell by 5.73 per cent to Rs 1,820.65. Infosys fell by 2.99 per cent to Rs 2,139.35 and Reliance Infra by 5.96 per cent to Rs 995.35.

Among the sectoral indices, realty index suffered the most by losing 9.76 per cent to 3,453.63 points. The metal index fell by 5.95 per cent to 13,110.68 points, oil and gas index lost 4.10 per cent to 9,047.91, power index by 3.49 per cent to 2,812.78 and IT index by 3.44 per cent to 4,273.38. With the selling pressure spreading over a wide-front, the smallcap index lost 4.50 per cent to 6,741.24 points and the midcap index by 3.74 per cent to 5,789.49 points. —
PTI

Shares of Reliance Industries on Tuesday plunged nearly six per cent on the Bombay Stock Exchange amid reports that the nation's premier audit body, CAG, has constituted a team for conducting special audit on the books of the company.

At the end of trade, the market capitalisation of the country's most- valued entity dipped below the coveted Rs 3 lakh crore to Rs 2,99,155 crore.

Shares of RIL opened weak on the bourses and dipped further to touch an intra-day low of Rs 1,806, down 6.49 per cent over the previous close on the exchange. It later settled down 5.73 per cent at Rs 1,820.65 on the BSE.

The index heavy weight lost over Rs 18,170 crore in terms of market capitalisation in a single day today. At the end of trade on Friday last, the valuation of RIL was at Rs 3,17,328
crore.— PTI

Washington, November 3
US President Barack Obama yesterday said his administration has been successful in "pulling the economy back from brink" but sounded a cautious tone on unemployment, saying he expects job losses to continue for some more time.

"We have pulled the economy back from the brink," Obama said during a meeting of the President's Economic Recovery Advisory Board at the White House.

"We got good news last week showing that for the first time in over a year the economy was actually growing once again. And we have seen some (economic) indicators that manufacturing is beginning to pick up," he said.

"That's all good news and we are pleased that the actions that we took swiftly through the Recovery Act helped to stem what could have been a disastrous situation for the economy and we are starting to see stabilisation and, indeed, some improvement," Obama said.

However, he expects continued job losses in the weeks and months to come.
"As I said before, there (is) always a lag of several months between businesses starting to make profits again and investing again, and then actually rehiring again," he said.

"But I want to emphasise I am confident that having moved the economy on the right track, that if we apply some good common sense and reinvigorate that sector of our economy that's based on innovation and dynamism and entrepreneurship, that there's no reason why we're not going to be able to not only create jobs, but the kind of sustainable economic growth that everybody is looking for," Obama said. — PTI

Mumbai, November 3
To cash in on its huge branch network and client base, State Bank of India is all set to start wealth management business and financial planning services.

"We are currently running this service on a pilot basis and roll out through select branches across important cities and town would be done soon," a senior official told PTI. The business would mean additional fee income for the bank, the official said, adding that SBI has started talent hunt for the specialised service.

The bank has about 12,000 branches across the country and has over 14 crore account holders spread across length and breadth of the country. It would be targeting middle- income group as many large players are already present to provide services to high networth individual, the official added.

No bank or wealth managers are providing advisory to middle- income group so there is a great opportunity for the bank, the official added.

The official said the branches will depute financial planners to approach account holders with over Rs 5 lakh in their account, to ascertain whether the financial strategy adopted by the customer is correct or not.

The planner will also help the customer plan cash flows and income and expenses and also firm up financial goals with specific target dates. — PTI

New Delhi, November 3
The Supreme Court today said it was against allowing shareholders to intervene in the cross petitions of Ambani brothers, Mukesh and Anil, in the dispute over pricing of gas.

"We are not allowing anybody to intervene. This way, the court will have to hear three million sharedholders," a Bench headed by Chief Justice KG Balakrishnan said while hearing a plea by a person, claiming to hold shares both in Reliance Industries Ltd (RIL) and Reliance Natural Resources Ltd (RNRL).

The petitioner, Vishweshwar Madhvrao Raste, sought a copy of the 2005 family MoU between the Mukesh and Anil that has become the focus point in the gas dispute. Senior counsel Harish Salve and Mukul Rohtagi, appearing for the two brothers, also opposed the petitioner's plea.

"For a chance we are on the same side," they told the Bench, which would resume hearing arguments in the case for the seventh day tomorrow. The Bench, however, did not dismiss the plea. It would be heard along with the petitions filed by RIL and RNRL.

New Delhi, November 3
India's crude oil import bill fell by 41 per cent to $31.6 billion in April-September this year as international rates declined from a record peak.

Asia's third-largest oil consumer imported 69.6 million tonnes of crude oil for $31.6 billion in the first six months of current fiscal against 64.84 million tonnes of crude imported for $53.78 billion in the year-ago period, according to the data available from Petroleum Ministry here.

Crude oil prices had peaked to $147 per barrel in August 2008 and have since eased to around $70 a barrel.

Fuel exports at 14.3 million tonnes ($7.29 billion) in April-September 2009 were lower than 19.17 million tonnes ($18.77 billion) in the same period last year.

The nation's domestic consumption was almost flat at 10.69 million tonnes in September and rose 3.6 per cent to 67.26 million tonnes in April-September, the data showed.

Demand for diesel, the most consumed fuel, was up 4.7 per cent at 4.12 million tonnes in September and 8.5 per cent to 27.17 million tonnes in April-September. Petrol consumption soared 14.7 per cent to 6.3 million tonnes in the six months.

Jet fuel consumption was down 0.3 per cent at 2.22 million tonnes, reflecting the impact of economic slowdown on airlines. — PTI

Washington/New Delhi, November 3
The RBI’s gold stock has shot up by more than 55 per cent with the purchase of 200 tonnes of IMF gold at an estimated cost of $6.7 billion.
RBI, which pledged gold during 1991 crisis with the Bank of England to raise resources to meet external obligations, today said it has purchased 200 tonnes of gold from International Monetary Fund (IMF) for $6.7 billion.

"The Reserve Bank has decided to buy some gold...about 200 tonnes. That's normally we do (from) time to time. IMF is selling gold so we wanted to buy it," Finance Minister Pranab Mukherjee said in New Delhi.

When asked whether it was a reflection of the growing economic strength of the nation, Mukherjee quipped, "the conclusion is yours." RBI has purchased almost half the gold which the IMF plans to sell to raise resources to augment its operations and provide concessional loans to poor countries.

"The purchase was an official sector off-market transaction and was executed over a two-week period during October 19-30, 2009 at market- based prices," RBI said in a release.

The decision to purchase gold will raise RBI's stock of the precious metal from 357 tonnes to 557 tonnes, representing an increase of over 55 per cent.

The IMF, in pursuance of the decisions taken at the G-20 summit in London, had decided to sell about 403.3 metric tonnes of gold to shore up its finances so that it can lend money to the poorest countries at concessional rates.

"This transaction is an important step toward achieving the objectives of the IMF's limited gold sales programme, which are to help put the Fund's finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries," IMF managing director Dominique Strauss-Kahn said. —
PTI

New Delhi, November 3
Gold prices today set a new peak at Rs 16,470 per 10 gram in the bullion market here on frantic buying by stockists and jewellers for the ongoing marriage season amid a firming global trend.

Standard gold and ornaments shot up by Rs 280 each to Rs 16,470 and Rs 16,320 per 10 gram, respectively. Sovereign also gained Rs 35 to touch a fresh peak of Rs 13,060 per piece of eight gram.

Marketmen said increased buying by retailers for the ongoing marriage season led to the rise in gold prices.

Besides, reports that the yellow metal in the overseas markets spurted to $1,064 last evening as weakening dollar raised the demand for the yellow metal as an alternate investment bolstered trading sentiment.

Buying in precious metal also picked up as some of the the funds were seen shifting from melting equities to the bullion, considering it a safe bet, they said.

The Bombay Stock Exchange benchmark Sensex today closed sharply lower by 491.34 points to close at 15,404.94, a level last seen on September 3.

Silver rose by Rs 200 to Rs 26,550 per kg on emergence of buying by coins manufacturers and industrial units.

Silver ready went up by Rs 200 to Rs 26,550 per kg and weekly-based delivery by Rs 250 to Rs 26,200 per kg. —
PTI

London, November 3
Bailed out British banking majors Lloyds Banking Group and the Royal Bank of Scotland have agreed to sell part of their businesses, a move that will bring down their dependence on taxpayers' money.

The British government holds 43 per cent stake in Lloyds and about 70 per cent in RBS, following their rescue in the wake of the financial meltdown.

In a statement today, the UK Treasury said the government has agreed restructuring plans for RBS and Lloyds that include the divestment of a significant proportion of their retail and corporate banking assets over the next four years.

"The divestments from each bank will represent a viable stand-alone entity, together representing nearly 10 per cent of the UK retail banking market," it noted.

Moreover, the Treasury pointed out that to ensure these divestments increase diversity and competition in the UK banking market, the assets can only be sold to small or new players in the market.

Lloyds would be not be participating in the Asset Protection Scheme (APS) — a government programme that guarantees toxic assets of banks — while RBS would be participating in the scheme on revised terms.

Separately, Lloyds today said it would be raising £21 billion, which includes rights issue worth £13.5 billion. The remaining amount would be mopped up through an exchange offer of securities.

The fund raising plan would help the entity to keep away from APS.

"The likely costs to the taxpayer and the risks on the impact on the public finances have been reduced. Both banks (Lloyds and RBS) will still be required to meet tough conditions on pay and lending...," the statement said.

In return for taxpayer support provided, both banks have made commitments, including non-payment of discretionary cash bonuses in relation to 2009 performance to any staff earning above £39,000.

Further, executive members of both boards have agreed to defer all bonuses payments due for 2009 until 2012, to ensure that their remuneration is better aligned with the long-term performance of their banks.— PTI

New Delhi, November 3
The country's top steel makers, SAIL, JSW Steel, Essar and Ispat Industries, today cut prices of their products by up to Rs 1,500 a tonne, mainly on account of falling global demand.

"We have cut prices of our flat steel products (used primarily by automobile and the white goods industry) in the range of Rs 500-1,500 a tonne," a SAIL spokesperson told PTI.

JSW Steel cut the rates of its products in the same segment by up to Rs 1,400 per tonne, while Essar Steel and Ispat Industries reduced prices by up to Rs 1,000 a tonne.

The steel makers did not alter the prices of long steel products, used by construction and infrastructure companies.

"Globally prices have got corrected by about $50-60 a tonne in the last two months. Also, rupee has appreciated compared to its September level. Both factors made us cut our prices," JSW Steel Joint MD Sesahgiri Rao told PTI.

The rupee appreciated against the Dollar by about 3 per cent to 46.96 by the end of October as compared to 48.04 level in September-end.

A Essar Steel spokesperson confirmed the price cut and said "the increase in steel imports in past few months is hurting the domestic industry." — PTI

L&T bags Rs 6,897-cr contract
Mumbai: Engineering and construction major Larsen & Toubro on Tuesday said it has bagged an order worth Rs 6,897 crore from Maharashtra State Power Generation (Mahagenco) for manufacturing turbine generator units. The company has received the order for manufacturing 3x660 MW super-critical turbine generator units, L&T said in a filing to the Bombay Stock Exchange. —
PTI

Mitsubishi outlet
Chandigarh: Mitsubishi Heavy Industries has opened its sales, spares and service outlet for its range of air conditioners in Chandigarh. Atul Trivedi, Asia head of the company, said all products will be sourced from their overseas manufacturing facilities.— TNS

Vigilance awareness week
Chandigarh: The SBI is celebrating a vigilance awareness week, beginning Tuesday. As part of the celebrations, Ajay Swaroop, chief general manager, SBI, administered the oath to all staff members at the local head office here. He said during the week-long celebrations, various customer-oriented programmes would be held at all bank branches in the region. —
TNS

Idea tariff plan
Chandigarh: Idea Cellular has introduced a pay-per-second tariff plan. The Punjab subscribers will get to make all local and STD calls on any network in India at the lowest tariff of 1 paisa per second. To avail this plan, both existing and new subscribers can purchase a special voucher priced at Rs 64.—
TNS

UNDP seminar
Chandigarh: A seminar on energy-efficient technology in steel re-rolling sector was organised by United Nations Development Programme here on Tuesday. As many as 60 industrial units from Mandi Gobindgarh, Ludhiana and Chandigarh, participated in the seminar. Gobind Mishr, national project coordinator, UNDP, exhorted the steel mills to opt for eco-tech options and do away with fossil fuels in order to save environment. — TNS

Axis Bank expands network
Chandigarh: Private sector lender Axis Bank has expanded its branch network in North by opening two new branches in Punjab and one in J&K. The branches were opened in Amritsar and Batala in Punjab while yet another branch was opened in Jammu. — TNS